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Creditflux CLO Symposium 2026

location_on The Chancery Rosewood, London Map
20 Apr

Current state of the global ABS market – A tale of cautious optimism?

Speakers

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Nathan Tipping Moderator Reporter, Debtwire
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Darragh Culley Head of Investment Business Development, Legal & General
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Chris Whitcombe Head of European & US ABS, Challenger Investment Management
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Andrew Lennox Senior Portfolio Manager, Federated Hermes
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Adrian Scragg Director of Treasury, Capital Markets and ESG, Lendco
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Peter Winning Director, Portfolio Management Group, BlackRock

Panel Introductions and ABS Market Overview

The moderator introduces the panel and provides a data-driven snapshot of European public ABS issuance, highlighting a 34% increase in Q1 2026 versus Q1 2025. Key trends discussed include the continued dominance of RMBS, the revival of CMBS, the restart of auto issuance following the UK Supreme Court ruling on car finance, and an uptick in Spanish and Austrian issuance.

Geopolitical Volatility and ABS Market Resilience

Panellists discuss how the ABS market has adapted to ongoing geopolitical shocks, including the Iran war, drawing comparisons to Liberation Day. The consensus is that markets have become comfortable with uncertainty, operating in a start-stop fashion. Spreads widened modestly but largely recovered, and a surge of public issuance occurred when windows opened, with strong book coverage across the capital stack.

Programmatic Issuance and the Rise of Pre-Placed Deals

The discussion explores whether ABS issuance is becoming more programmatic, with issuers clustering into brief windows of market calm. The growing prevalence of pre-placed and privately placed transactions is examined from both issuer and investor perspectives, including the trade-offs around liquidity, book building, and long-term programme health. The blurring of public and private markets is highlighted as a structural trend.

Lessons from the MFS Collapse

Panellists examine the fallout from the MFS collapse and its implications for due diligence practices across public and private ABS markets. Topics include double pledging checks, cash tracing audits, the retreat of investment bank warehouse lending to smaller originators, and the emergence of enhanced third-party verification. The discussion highlights that best practice is still evolving and that governance must be central to the securitization diligence process.

Private Credit BDCs and Selective Opportunity

The panel briefly examines private credit BDCs as an investment opportunity, noting that spreads widened significantly during the Iran war before partially recovering. Investors are urged to conduct granular analysis of individual BDC managers, assessing second-lien exposure, software sector risk, and underwriting track records rather than writing off the asset class entirely.

Regulatory Reform and Its Impact on ABS Investment

Panellists review the wave of regulatory changes affecting ABS investors and issuers, including EU Solvency II reforms reducing capital charges for securitizations from January next year, proposed CRR updates for banks, and the UK's post-Brexit Solvency UK framework. The discussion covers how these changes could draw insurers back into the market, tighten spreads on senior tranches, and ultimately support growth in issuance and investor participation.

Buy-to-Let Market Evolution Under the Renters' Rights Act

Adrian Scragg discusses how the Renters' Rights Act has reinforced an already underway shift towards professional landlords in the buy-to-let market. Lenders are increasingly financing larger portfolio operators with dedicated treasury functions, who are better equipped to manage legislative change. Investor scrutiny of portfolio composition, including MUFBs and HMOs, has evolved alongside this professionalisation trend.

New Asset Classes in Securitization

The panel examines the growing securitization of new asset classes such as data centres and solar panels, focusing on the challenges investors face including limited historical data, evolving deal structures, and technical obsolescence risk. Data centre deals are scrutinised for their reliance on hyperscaler tenants, the opacity of lease terms, and the difficulty of assessing credit strength without full disclosure of tenant identity.

Audience Q&A and Closing Remarks

An audience member raises the topic of mini-perm structures as a hybrid financing approach for data centres, combining stabilised and unstabilised asset pools alongside ABS, CMBS, and USPP formats. The moderator redirects the question to a dedicated data centre panel later in the event, before closing the session with thanks to all panellists.